What is a Dash coin and is it a good investment?
Dash is a cryptocurrency aims to improve the way people move money. It allows users to quickly and cheaply send funds to anyone, anywhere, anytime.
The Dash coin (generally known as DASH in the crypto market) is the native token of the Dash blockchain. Dash coin which primarily focuses on payment protocol was launched in 2014 spawning numerous imitators.
The cryptocurrency was created by developer Evan Duffield under its original name Xcoin which was later changed to Darkcoin. A year after its launch, the coin saw a major rebranding which birthed Dash coin. The coin was created to beat Bitcoin’s sluggish 10-minute transaction times and also provide better user privacy compared to Bitcoin.
DASH is one of the digital coins that offer cheap and fast payments across the globe. It intends to offer privacy equal to cash and a user-friendly experience. A lot of digital coins are barely used for transaction purposes, however, Dash has strongly established a scalable network of digital payments.
In this article, we’ll have a proper look at Dash coin, learn how it works, what makes it distinctive, and whether or not it is a good investment.
What makes Dash special
One of the very unique features of Dash coin is its masternodes network. Masternodes are distinct servers with a complete replica of the Dash blockchain. Individuals with a minimum of 1,000 Dash coins can run masternodes that facilitate various features of the Dash blockchain.
These features consist of CoinJoin and InstantSend. Coinjoin is a technique of operating a series of transactions which makes transactions difficult to trace. As regards InstantSend, it allows full confirmation of transactions within two seconds.
While a lot of merchants fail to accept most of the digital coins, Dash proves to be an exception. Dash launched a retail savings app known as DashDirect in July 2021. The app enables users to make various transactions using Dash in over 120 websites, and 150,000 stores. It also offers several discounts to users depending on the amount the retailer is willing to offer. Another unique feature of Dash is its user-friendly nature. check them at the official trading site.
How Dash works
Dash’s operation is quite similar to that of Bitcoin, but their main difference lies in the algorithm that each uses to mine coins. For superior efficiency, Dash also makes use of a two-tier network structure.
The first tier of the Dash network structure is its proof-of-work system that allows mining devices to solve mathematical equations. Every time a miner solves an equation, new blocks of transactions are added to Dash’s blockchain.
The new block of transactions added to the Dash’s blockchain generates rewards that are split in three ways;
- 45% to miners
- 45% to masternodes
- 10% to Dash’s governance budget
The second tier of the Dash network structure is the Dash’s masternodes. Users who own a minimum of 1,000 Dash can operate a master nodeThese masternodes are credible for the Coinjoin and InstantSend features of the Dash network.
Presently, there are about 10 million Dash coins in circulation and its maximum supply is pegged at 18.9 million. Dash is traded on various crypto exchanges such as Binance, Coinbase, and Kraken.
Is Dash still a good investment?
To be able to answer this question adequately, we’ll need to have a look at Dash’s current performance. That’s not all, we’ll also check out what analysts have been saying about the prospects of the token.
DASH’s recent performance
The major bull trend experienced in the first quarter of 2021 pushed Dash to a new high of $476 on the 7th of May. But since then, the price of the digital coin took a nosedive until the 7th of November when the coin made an impressive 2 days bull run.
Following the downtrend, it could be said that a support line is being held at $175.6 which resisted the downward trend on 1the 9th of November. However, the support line has been broken and dash currently trades at the $ 140 range with new support being formed at t104.5.
From this information, it could be deduced that Dash is presently on a downtrend but if the $104.5 support line holds, a brief upward movement would happen. Regardless, a return to the $476 high is very much unlikely.
A lot of analysts have made their predictions about Dash coin for the coming year 2022. The predictions are quite positive, stating that the coin could see a 79% growth from the current price maxing out at $330.
Many financial experts including WalletInvestor’s predict a price of over $550 for a Dash coin in the year 2025. Presently, the sentiments are still bearish but the bigger picture is clear on the Dash coin.
That being said, the future of the Dash coin seems to be positive and these predictions are conformations to the bais. Following these predictions, investing in Dash coin for the long term seems like a good investment
In summary, it’s quite a mixed feeling for Dash coin. While plenty of analysts is quite optimistic on decent ROI on long-term investment, the recent performance suggests Dash could go either way. To this end, if you’re considering a long-term investment, you can invest in Dash coin.
Please note that the Dash coin price predictions are speculative and should not form the basis of investment advice.
If there is a currency that gained popularity within Latin America, it is Dash. Thanks to projects aimed at marketing and massive adoption in Colombia, Venezuela and Argentina, this digital currency of American origin has positioned itself as one of the preferred options for Spanish-speaking people.
But what is Dash? How does this coin work? What’s so special about it? In this guide, we will seek to explain the essential elements that make up this currency.
Definition of ‘dash.’
According to the definition provided by the Dash White Paper, it is a digital currency that is based on the idea of Bitcoin but provides other elements of its own such as Master Nodes, a structure of its own that allows the operation of a DAO within the Dash ecosystem.
Likewise, it has the options for sending PrivateSend and InstantSend transactions. These options allow users to send privately and instantly. In particular, the PrivateSend option was one of the most radical differences proposed for the currency, and this was based on the CoinJoin project. This currency sought to provide more privacy for transactions within the Blockchain.
The coin also has limited production, just like Bitcoin, and its maximum production is set at 18,900,000 coins. According to the approximations of the project developers, this number will be reached approximately in the year 2150.
A Dash block is generated every 2.6 minutes, almost a quarter of the time it takes the Blockchain network to create a Bitcoin block (10 minutes). Likewise, the reward within each block is reduced each year by 7.14%, a much faster reduction than the halving that we can find in the Bitcoin network.
Origins and creation of Dash
That name did not always know as Dash despite being an established coin in the market. Evan Duffield, its original creator, firstly devised a project called XCoin to later change it to Darkcoin, a name much more in line with his ideal of privacy for digital currencies.
The original idea was not far removed from the project we know today as Dash.
The existence of the Master Nodes for the maintenance of the network was already considered the PrivateSend was called DarkSend.
Likewise, it raised the need to implement a new algorithm called “X11 “, a deterministic quasi-random algorithm that works with the identification numbers of each transaction carried out within the network.
However, the Darkcoin name did not last long. The community itself formed around the currency decided to change its name to achieve a more significant impact within the trade; they chose to become what we know today, the Dash cryptocurrency.
The Instamine at the beginning of the coin
In addition to the name changes, Dash’s beginnings were seriously hit by the event known as “Instamine.” This event generated that the coin had a minimum mining difficulty, and thus the miners could obtain a large number of coins with minimal effort and time. The period in which this situation lasted was concise as Evan saw it in time and corrected it as soon as possible, but it allowed 1.9 million coins to be mined very quickly.
Evan Duffield proposed to the community the possibility of performing AirDrops to equalize the amount of mined coins and balance the market. The district rejected the proposal and determined that the best thing to do was to let the event pass and accept the distribution.
In an official statement, the Dash team claimed that most miners who got large rewards from the mining difficulty code bug sold all their coins.
They explain that because the coin was still a nascent project, people did not know its value and thought it was worth nothing.
The only development team members who benefited from Instamine were Evan Duffield and a user known by the pseudonym InternetApe. This last user once owned 160K DASH but split up a while ago and sold all the coins. The only member who owns a significant amount of cash is Evan Duffield, although the Dash team assures that he is not the user who owns the most coins within the Dash ecosystem.
How does Dash work?
Privacy and speed in transactions were the two shortcomings that Dash developers saw when creating the currency. Faced with this situation, they made a:
“Heavily anonymous, decentralized cryptocurrency with secure instant transactions and a secondary peer-to-peer network incentivized to serve the Dash network.”
The focus on a better node system than Bitcoin had come after observing a severe decline in active full nodes within the Bitcoin Blockchain network. Furthermore, the fact that the network would continue to increase in size would mean that costs for node operators would increase dramatically in the future, a rather daunting situation.
As a solution, Dash raised the need to create Controller Nodes, complete nodes within the network that would work in a similar way to Bitcoin nodes, but with the addition that they would offer a more excellent service to the network and would have a link with collateral to be able to operate within the network.
Being a Masternode in the Dash network comes at a price. The Node must store the amount of 1000 DASH to be admitted into the network. However, the network provides dividends for their participation, generating in some way a return on investment for the owner of the Node if they had to acquire the 1000 DASH.
According to the Dash White Paper, around 45% of the block rewards are spread across participating Masternodes.
By requiring the need to have 1000 DASH to operate a Controller Node, the network ensures that no one can gain control of 50% of the network. Having such authority would require an excessive purchase of currencies that would generate a genuinely shocking impact on the market.
A system with the Master Nodes allows for creating a “Quorum without the Need for Trust” within the network. The system allows a random number of Master Nodes to confirm operations without the need for the entire network to participate in the process, which significantly reduces the time and cost of operations.
Another essential quality that the Masternodes present within the Dash network is making up the DAO and directing the so-called “Dash Treasury”. Said Treasury is fed monthly with 10% of the rewards from each block mined within the Dash Blockchain network. When writing this article, the Dash Treasury had 5,232 DASH to distribute.
To better understand: What is DAO?
The developers, advertisers and the entire team that works day by day for the Dash project are kept from this Treasury. Likewise, it also invests in third-party projects intended to strengthen the currency’s ecosystem and promote its use in different markets around the world. Anyone can post a proposal within the fund; you only need to pay a fee of 5 Dash to get into the voting cycle.
Masternode control over the Treasury is maintained through the voting system. Any Masternode can vote for, against or abstain on a specific project within the voting cycle.
For a project to be financed by the Treasury, it needs to have a favourable vote of 10% of the Masternodes active within the network.
One of the utilities presented by the Master Nodes within the network is the ability to execute instant transactions. Forming a quorum among the Master Nodes is faster than the entire confirmation process expected within a cryptocurrency Blockchain network.
The White Paper, a quorum on the completion of a transaction, can be formed in 4 seconds, a time short enough to guarantee the speed of the transaction.
The quality of PrivateSend does not imply that user transactions are not recorded within a Blockchain chain or that they are not transparent to any user. In reality, this option means crossing operations with other users so that the processes cannot be traced.
The PrivateSend system implies that a transaction is the product of a combination of funds from at least three parties. The union between users occurs within a Controller Node; the said union is carried out without exchanging information that may be susceptible to the identification.
The Dash Core team and its developers are working on a significant update within the system, calling it Dash Evolution. This proposal aims to make the Dash ecosystem easier to manage, especially for people who are not very familiar with concepts such as a wallet, public address or private key.
The approach is to present a system similar to PayPal or any online system a bank may have. The identification of users within Dash Evolution can be made with regular characters; that is, we can identify a wallet with a specific username without having to go through complications with public addresses or QR codes that not many know how to handle.
It may interest you: Dash CEO Ryan Taylor: Central Bank-Issued Cryptocurrencies Are the “Inevitable Future.”
The wallets’ private keys associated with Dash Evolution will continue to be held by the users themselves. A recovery phrase will be generated when creating a wallet, and it will serve to recover the wallet in the event of any loss or theft.
In addition to the payment facilities, Dash Evolution will also allow the storage and execution of applications within the system. These applications can be developed by physical stores or virtual businesses that want to accept DASH in exchange for their services.
Dash Evolution is still in the testing phases, and it is not known to the public when it will be released to the entire market. Developers are still working on the idea, and one of the objectives is to be fulfilled within the Dash Roadmap.
What can I buy with DASH?
The team behind Dash maintains an official “directory” listing all the places in the world where you can buy using DASH. According to the numbers on the site, there are more than 4,600 businesses where it is possible to purchase some service or product by paying with DASH.
Particularly in Latin America, it is possible to find several businesses that accept DASH because the Dash Treasury has invested considerable amounts in promoting Latin American communities to adopt DASH. The Dash Venezuela, Dash Colombia and Dash Argentina communities are the largest and this is reflected in the businesses that accept DASH within these countries.
To dig deeper: S. Barrio, sales manager at Qubit Brokers: “In Venezuela or Argentina, cryptocurrencies can be an alternative to the volatility of money.”
Among the businesses that accept DASH in Venezuela, we will find the chicken chain “Church’s Chicken” it is also possible to see some “Subway” sandwich shops and “Papa Jhon’s” pizzerias accepting the virtual currency as a form of payment. One major store that started taking Dash within Venezuela was “Traki”, the largest department store in Venezuela and one of the largest in Latin America.
It may interest you: The current economic crises in Venezuela and other countries show that the idea of Bitcoin as a store of value is becoming more and more a reality.
In Colombia, you can also see many businesses accepting Dash. The companies that take the virtual currency here are smaller than those we can see in Venezuela. However, the Dash Colombia team plans to achieve more impact within the country.
Exchanges where you can buy Dash
DASH is a currency with international reach and is accepted in the exchanges with the highest volume in the market. However, we will specify which Latin American businesses allow us to buy this digital currency through our local currencies.
What is a Dash coin and is it a good investment?